Loose Fiscal Policy a Common Factor Behind Higher Long-End Bond Yields
Dow Jones
Aug 17
0531 GMT - Given the recent rise in long-end bond yields in major markets, including the U.S., Japan and the U.K., analysts at Bank of America say they do not see any single driver. "There is not a single driver to point to, but excessively loose fiscal policy is generally a common factor," they say in a note. In the U.S., the rise in long-end rates has happened despite the fact that the Treasury has kept coupon auction sizes stable, essentially pivoting more and more to shorter-term funding, the analysts say.
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